Justia Energy, Oil & Gas Law Opinion Summaries

In 2010, a PG&E natural gas pipeline exploded in San Bruno, CA, causing death, great physical injuries, and extensive property damage. Governmental entities investigated the incident and PG&E’s business practices. The Public Utilities Commission retained an independent firm, Overland, to review PG&E’s gas transmission safety-related activities from a financial and regulatory audit prospective. Plaintiffs sued, seeking redress for PG&E’s alleged misappropriation of over $100 million in authorized rates that it should have used for safety-related projects. According to the complaint, PG&E misrepresented and concealed material facts when it used money collected from ratepayers to pay shareholders and provide bonuses to its executives instead of spending the money on infrastructure and safety measures. The complaint alleged that PG&E’s negligent handling of the pipe that exploded in San Bruno was unlawful and arose from PG&E’s corporate culture that valued profits over safety and that PG&E’s actions constituted an unlawful business practice under California Business and Professions Code section 17200. The superior court dismissed without leave to amend, finding the action barred by Public Utility Code section 1759 because it would interfere with the California Public Utilities Commission’s jurisdiction.” The appeals court affirmed. View "Guerrero v. Pacific Gas & Elec. Co." on Justia Law

Reporting that it suffered underrecovered transmission costs of $36 million during the period under review, the Ohio Power Company filed an application to recover the underrecovered transmission costs associated with providing transmission service to its standard-service-offer customers. The Public Utilities Commission approved the application, determining that Ohio Power could collect the underrecovered costs from both shopping and nonshopping customers. Industrial Energy Users-Ohio (IEU) appealed, arguing that the Commission abused its discretion by allowing Ohio Power to recover the underrecovered transmission costs from shopping customers. The Supreme Court affirmed, holding that the IEU did not meet its burden of demonstrating that the Commission’s orders were unjust, unreasonable, or unlawful. View "In re Application of Ohio Power Co." on Justia Law

Plaintiff filed suit against XTO, an oil and natural gas producer, for damages caused by vibrations from drilling operations. The jury returned a verdict for plaintiff and XTO moved for a new trial. The district court denied the motion and XTO appealed. The court concluded that, even assuming the jury's fracking and earthquake discussions included any extraneous matters under Federal Rule of Evidence 606(b)(2)(A), XTO has not shown a reasonable possibility that the discussions prejudiced it or altered the verdict. Therefore, the district court did not abuse its discretion in denying XTO's motion for a new trial. Further, the district court did not abuse its discretion in declining to subpoena the jury foreman under Moore v. Am. Family Mut. Ins. Co. Accordingly, the court affirmed the judgment. View "Hiser v. XTO Energy, Inc." on Justia Law

Mississippi Power Company filed documents asserting confidentiality with the Mississippi Public Service Commission related to a certificate-of-public-convenience-and-necessity proceeding in January 2009. In July 2012, Bigger Pie Forum (BPF) requested three of those documents from the Commission, and Mississippi Power sought a protective order. Following a hearing, the Chancery Court ordered that the documents be produced. Mississippi Power appealed. The Supreme Court affirmed the judgment of the Chancery Court to the extent that it ordered disclosure of the January 2009 gas price forecasts and CO2 cost assumptions that were similar in kind to those already published (by news media). However, the Court remanded this case to the Chancery Court to should consider the documents under seal and order that information pertaining to natural gas price forecasts and CO2 costs assumptions be produced by Mississippi Power. View "Mississippi Power Company v. Mississippi Public Service Comm'n" on Justia Law

Plaintiff-appellee Randy Howard sought to bring a class action suit against Ferrellgas Partners, LP in federal district court for allegedly overcharging him and other customers. Ferrellgas moved to force plaintiff to pursue his individual claim alone, in arbitration, arguing that arbitration was the procedure the parties had agreed to. The district court was unable to conclude that the parties agreed to arbitrate. Rather than proceed to trial as the Federal Arbitation Act required, the district court entered an order denying arbitration outright. The Tenth Circuit concluded that denial was error: "When it's apparent from a quick look at the case that no material disputes of fact exist, it may be permissible and efficient for a district court to decide the arbitration question as a matter of law through motions practice and viewing the facts in the light most favorable to the party opposing arbitration. . . . Parties should not have to endure years of waiting and exhaust legions of photocopiers in discovery and motions practice merely to learn where their dispute will be heard. The Act requires courts process the venue question quickly so the parties can get on with the merits of their dispute in the right forum. It calls for a summary trial — not death by discovery." View "Howard v. Ferrellgas Partners, et al" on Justia Law

Smith Lake filed suit against FERC and others, alleging claims related to the Commission's issuance of a license order. Alabama Power intervened and moved to dismiss the petition for review based on lack of jurisdiction. The court granted the motion because the appeal was untimely, concluding that Tennessee Gas Pipeline Co. v. FERC and Clifton Power Corp. v. FERC stand for the proposition that the court will not hear a case if the petitioner has a rehearing petition pending before the Commission at the time of filing in this court, whether it was required or not. Consequently, a party must choose whether to seek an optional petition for rehearing before the Commission, or a petition for review to the court; it cannot proceed simultaneously. View "Smith Lake Improvement v. FERC" on Justia Law

Columbia, an interstate natural gas company subject to the jurisdiction of the Federal Energy Regulatory Commission (FERC), seeks to replace a portion of a natural gas pipeline that runs in and around York County, Pennsylvania. Because the original location of the pipeline has become heavily populated, the replacement will not track the original line but will be outside the existing right of way. To obtain easements necessary to complete construction of the replacement, in 2013, Columbia filed Complaints in Condemnation against four Landowners in federal court. The district court held that Columbia did not have the right of eminent domain required to condemn the easements, reasoning that 18 C.F.R. 157.202(b)(2)(i), was ambiguous. The Third Circuit reversed, finding that the regulation clearly anticipates replacement outside the existing right of way and contains no adjacency requirement. The district court erroneously adopted its own definition of “replace” and concluded that a “notice” of “proposed rulemaking” for “Emergency Reconstruction of Interstate Natural Gas Facilities” promulgated by FERC after 9/11 was relevant.View "Columbia Gas Transmission, LLC v. 1.01 Acres in Penn Twp" on Justia Law

Rita Sue Rasnic, (f/k/a Johnson) appealed the grant of summary judgment quieting title to disputed mineral interests in McKenzie County to Norris and Beverly Hildre. Rasnic argues she was entitled to the disputed mineral interests because those mineral interests were subject to a mortgage held by her predecessor in interest, American State Bank. Upon review, the North Dakota Supreme Court concluded the plain language of the Hildres' 1988 mortgage applied only to mineral interests owned by them when the mortgage was executed and title to the disputed mineral interests, which was acquired by the Hildres after the mortgage was executed, did not inure to American State Bank as security for the Hildres' debt under N.D.C.C. section 35-03-01.2(4). Accordingly, the Court affirmed the judgment quieting title in the disputed mineral interests to the Hildres. View "Rasnic v. ConocoPhillips Co." on Justia Law

In an appeal by allowance, the issue this case presented for the Supreme Court's review was, inter alia, the scope of the authority of the Department of Environmental Protection (“DEP”) to issue administrative orders under the Bituminous Coal Mine Safety Act. The Court found that the DEP acted within its authority with respect to the orders it issued regarding certain failures to report accidents, but that it improperly issued other orders with respect to requiring fire extinguishers on certain mining vehicles. Thus, the Court reversed in part, and affirmed in part, the order of the Commonwealth Court. The case was thereafter remanded for further proceedings. View "DEP, Aplt. v. Emerald Coal Resources, et al" on Justia Law

Debra Ganske, Wesley Borgen, Michael Borgen, Sue Evans, and Linda McCoy ("the Borgens") appealed a district court summary judgment quieting title in certain oil and gas leases in Golden Eye Resources, LLC and dismissing their counterclaim for rescission or cancellation of the leases. Golden Eye cross-appealed. Upon review of the matter, the Supreme Court reversed and remanded, concluding the district court erred in concluding the Borgens' fraudulent inducement claims were barred as a matter of law, and the court therefore erred in dismissing their rescission action and quieting title in the leases in Golden Eye. View "Golden Eye Resources, LLC v. Ganske" on Justia Law